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Thoughts on agreed value insurance - Can you over insure?

Drewie

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Just organising my insurance renewal on my 2001 VX SS. I realise market value of these can be anywhere between $8k and $12k but we are talking cars with maybe 200,000 plus km and a hard life.

My situation, my VX SS has 70,000km on it, I have had it from new and it is still brand new in appearance, I was at a Holden dealership about a month back collecting a car for my daughter and had a couple of the new car sales guys look at it, they were amazed at its presentation, and said to me it would be worth some serious money what ever that means. Completely stock standard and exactly as it was the day I bought it.

Now the insurance - not sure if I am getting the balance right here between premium and agreed value. Last year RACV had an agreed value on it for $20,050. The renewal came in this year with the agreed value dropped to $15,500 I thought still not too bad, but I gave RACV a call to see if that was the max they would go, the guy said I will run a few scenarios and see what the computer spits out, it will reject the request if the asked for agreed value is too high, well he came up with the following.

Agreed Value of $15,500 - Premium $736.15

Agreed Value of $18,000 - Premium $766.15

Agreed Value of $20,000 - Premium $797.13

I said I will go with the $20k version and he said I will send you out some new paper work, but after thinking about it do you think it is worth paying the extra premium for the $20k cover when in reality if I sold the car even though it is like brand new I would still maybe only get low to mid teens.
I sort of feel I am over insuring it, but as they have offered that figure would you take it, or go for the cheaper premium. Appreciate your thoughts.
 

Mick1988

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Well think about it. it's an extra $60 per year for an extra $5000 if you crash it. You'd need to not crash the car (or be crashed into) for 83 years for the extra coverage to not be worth it.
 

TXB-409

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Well think about it. it's an extra $60 per year for an extra $5000 if you crash it. You'd need to not crash the car (or be crashed into) for 83 years for the extra coverage to not be worth it.
exactly as above, took the words out of my mouth.

well worth the extra couple of bucks for the $5000 insurance imo!
 

Mirkz

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Its up to you mate.

If a company is happy to insure it for a certain value (Make sure there's no clause of 'Agreed value or market value, whichever is the lesser' or something to that effect, as although you're paying premium based on 20k, in reality you're paying for something you'll never get in an accident/total loss situation because the market value is much less) I say go for it. It's extra money in your pocket which helps toward a replacement.

Would you rather have to fork out an extra 5k to get something new yourself, but save yourself a relatively small amount of cash if you consider what you're getting out of it. Or would you rather have the 5k there already, OR potentially be able to step up into the next model because you have the extra money and paid that extra premium to start with ?



All up to personal preference.
 

showbags

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give shannons a call. they do really good deals on low km cars. regardless of age.
 
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